Levels for asbestos credits inched up last week, with Armstrong Holding's debt bid at 55.8 and Owens-Corning's levels at 70 bid, from as low as 50 three months ago. No trades were reported. Dealers continue to cite an improving asbestos market. Despite Bank of America's dumping of asbestos names three weeks ago, dealers say levels haven't suffered among other holders of the name. Armstrong Holdings, based in Lancaster, Pa., manufactures hardwood flooring. Owens-Corning, based in Toledo, Ohio, makes fiberglass and composite materials.
A dealer who noted the strengthening levels was skeptical that there's been a flood of paper hitting the market. "There's lots of rumors, but I haven't seen that," he said. "I would be surprised if there was any large scale dumping." Three weeks ago Bank of America, in a portfolio cleansing, sold off $85 million of Owens-Corning in the mid-60s, along with large amounts of Federal Mogul and W.R. Grace (LMW, 8/19). Leonard Campanaro, cfo of Armstrong Holdings, referred calls to a spokeswoman who declined to comment. Michael Thaman, cfo of Owens Corning, was traveling and not available for comment. Gregg Bronk, spokesman at Owens-Corning, declined to comment.